Explain the following concepts.

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1)  Fiat Currency

2)  Correspondent Bank

3)  Balance of Trade

4)  Cross currency Rates

5)  Spread / % Spread

6)  Pips/ Points

7)  Tom / Value tomorrow Contract / Rate

8)  Forward Contract / Rate

9)  Premium and Discount

10)Outright forward rates

11)Clean or Free Float

12)Dirty or Managed Float

13)Merchant rates

14)Ready rates

15)LIBOR

16)Offshore Bonds

17)Collared Bonds

18)Book-runners

19)Hot money

20)Hedge Funds

21)Authorised Dealers (AD’s)

22)Inter-bank Market

23)Translation Risk

24)Daylight limit

25)Stop-loss limit

26)American and European options

 

Write notes on

1)  Arbitrage

2)  Speculation

3)  PPP theory

4)  Central Bank Intervention

5)  Market Stabilisation Scheme (MSS)

6)  List the features of offshore Financial Centres (OFC’s)

7)  Enumerate the features of GDR’s

8)  What are advantages of GDR’s to the issuing company and investors?

9)  Management of reserves is a balancing act. What is the role of RBI in this area?

10)Convertibility of a currency is a two-edge sword, why?

11)Foreign Currency Swaps

12)Foreign currency Futures

 

 

Distinguish Between

1)  Autonomous and Accomodating transactions.

2)  Arbitrage and Speculation

3)  Devaluation and Depreciation

4)  Fixed and Flexible Exchange rate systems.

5)  Merchant Transactions and Interbank Transactions

6)  Euro-currency Bonds and Credits (Loans)

7)  Euro-currency Bonds and Notes.

8)  Forward Contracts and Futures Contracts

9)  Futures Contracts and Option Contracts

 

Descriptive Questions

1)  The Current Account of the Balance of Payments is the key to establishing foreign currency demand/supply equilibrium. Discuss.

2)  Discuss the connectivity between exchange rates, interest rates and

commodity prices.

3)  Enumerate the features of the Bretton Woods System and explain the reasons for its failure

4)  Describe the operations of a foreign Exchange Dealing Room.

5)  Define a Bond. Discuss the various types of international bonds.

6)  Enumerate the roles of participants in the Indian Foreign Exchange market.

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hello, this is sunil Newaskar working as Visiting faculty for BMS / MMS (Finance ) with various colleges. also having shreya consultancy (in Project management and capital budgeting) . regards sunil newaskar
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